Equipment/Tools

Quantity Unit Cost Description Amount

Silver Crown Mixing
1 ₱250 bowl with 11 inches
₱250
Small baby wooden
1 ₱200 spoon
₱200
1 20 Tupperware 20
TOTAL ₱470

Supplies (for 1 week)

Quantity Unit Cost Description Amount
3 kg ₱286 Alaska Powdered Milk ₱ 858.00
1 kg ₱50 White Sugar 50.00
Alaska Condensed
6 can ₱51.25 Milk
307.50
2 packs 15 Plastic Bags 30.00
6 pcs 8 Cellophane 48.00
TOTAL 1,293.50

Investment= P1893.50

1 pack = 8 pastillas
30 packs = 1 batch = 240 pastillas

360 packs in 1 month

1 unit = 1 pack

(Schedule 1)

Sales Budget
For a month
Units to be Sold Unit Cost Sales Revenue
Estimated Sales Revenue 360 25 9,000

(Schedule 2)
Production Budget
For a month

Units to be sold (Sch1) 360 packs

Add:Desired Ending Invetory 15
TOTAL: 375
Less: Beginning Inventory 0
Units to be produced 375 unit

No. of pieces to be
375
produced
Cost per Unit: X
(M-) (Sch4)
(Labor-0.3) (Sch3)
 (FOH-0.3325)
Production Budget ₱

(Schedule 3)

Direct Labor Budget

For a Month

Number of Production Hours Per Week 3 hrs

Multiplied to: Weeks in a Month 4
Total Working Hours 12
Multiply: Direct Labor Cost per hour` 100
Total Budgeted Direct Labor Cost P 1,200.00

(Schedule 4)
Raw Materials Budget
For a Month
Units to be Produced 375
Unit Cost (Cost Card) 13.37
Total Budgeted Materials Cost 5,013.75

(Schedule 5)
DEPRECIATION SCHEDULE
Equipment Amount Years Monthly depreciation
Mixing Bowl ₱ 250 5 4.17
Wooden Spoon ₱ 200 3 5.56
Tupperware 20 2 .83
TOTAL 10.56

(Schedule 6)
Overhead Budget
Variable Overhead
Plastic (15/50*375) P 112.50
Cellophane (3000/120) 25.00 137.50
Fixed Overhead
Rent 150.00
Depreciation 10.56 160.56
Overhead P 298.06
(Schedule 7)
Budgeted Marketing and Administrative Expenses

Variable ---
Fixed
Salesman’s Salary (50/day*24days) 1,200.00
Total P 1,200.00

(Schedule 8)
Budgeted Statement of Cost of Sales
For a Month

Raw Materials Used (Sch 4) ₱ 5,013.75

Direct Labor Cost 1,200.00
Factory Overhead Cost 298.06
Total Manufacturing Cost ₱ 6,511.81
Less: Ending Work in Process Inventory (0)
Cost of Goods Manufactured ₱ 6,511.81
Add: Finished Goods, Beginning (0)
Total Available for Use ₱ 6,511.81
Less: Finished Goods, end
260.47
(6,511.81*15/375)
Cost of Good Sold ₱6,251.34

(Schedule 8)

Budgeted Income Statement

For a Month

Sales (Sch 1)
₱9,000.00
Less: Cost of Goods Sold (Sch 6) ₱6,251.34
Gross Profit ₱2,748.66
Less:Marketingand
Administrative Cost (Sch 7)
₱1,200.00
Net Operating Income ₱1,548.66

FINANCIAL RATIOS

Gross Profit Margin = 30.54%

Net Income Margin = 17.21%
ROI = 81.79%
Payback Period = 1.22 months

Recipe - 200
3 kl Powdered Milk -
6 cans condensed
¾ kl Sugar
Cost Card

Material Invoice Needed

Units Amount Units Total Cost
Powdered Milk 3 kilos ₱ 858.00 3 kilos ₱ 858.00
Sugar 1 kilo 50.00 ¾ kilo 37.50
Condensed 6 cans 307.50 6 cans 307.50
TOTAL ₱ 1,203.00
Units Produced 90
Cost per Unit P 13.37

Breakeven Analysis
Variable Cost (for a month)

Quantity Unit Cost Description Amount

12 kg ₱286 Alaska Powdered Milk ₱3,432.00
3 kg ₱60 White Sugar ₱ 180.00
Alaska Condensed
24 cans ₱51.25 Milk
₱ 1,230
TOTAL: ₱4,842

Total ₱4,842.00
Plastic 112.50
Cellophane 25.00
Direct Labor Cost ₱1,200.00
Total Variable Cost ₱6,179.50
Variable Cost per Unit 16.48

Fixed Cost (for a month)

Depreciation ₱10.56
Salesman’s Salary 1,200.00
Rent ₱150.00
Total Fixed Cost ₱1,360.56

Selling Price P 25.00 100%

Variable Cost per Unit (16.48) 65.92%
Contribution Margin per Unit 8.52 34.08%

BEP(in units) = Total Fixed Costs = 1360.56 = 160 units

Contribution Margin per Unit 8.52

BEP(in pesos) = Total Fixed Costs = 1360.56 = P3,992.25

Contribution Margin Ratio 34.08%